HUMAN RESOURCE MANAGEMENT

Prepared by,Jubin Johny

Marian College,Kuttikkanam

“All corporate strengths are dependent on

people.” -Adi

Godrej

HUMAN RESOURCE MANAGEMENT

“ HRM is the function performed in organizations that facilitates the most

effective use of people to achieve organizational and individual goals.”

- Ivancevich and Glueck

The HRM process consists of planning, attracting, developing, and retaining the human resources (employees) of an organization.

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Human Resources Management

HR Planningstrategic HR

planning; job design

Attracting employees

recruiting; selecting

Developing employees

training & development; performance

appraisal

Retaining employees

compensation; maintenance; labor relations; separation

History of HRM

Human Resources Approach (1970s) Principles

Employees are assets Policies, programmes and practices - help in work and

personal development Conducive environment

Importance of “Human Resource Management”

Staff is the most important resource of an organization.

Human resource is the key ingredient to success.

“Human resource” creates organizational accomplishments and innovations.

Components of a HRM System

Recruitment/Recruitment/RecruitmentRecruitment

Training/Training/DevelopmentDevelopment

Compensation &Compensation &BenefitsBenefits

PerformancePerformanceManagementManagement

Human Resource Human Resource PlanningPlanning

OrientationOrientationSelectionSelection

Career Career DevelopmentDevelopment

HRM

Challenges of HRM

Individuals differ from one another.

Customization of stimulation and motivation.

Demanding personnel.

Functions of HRM Managerial

&Operational

HRM Functions

1. Understanding and relating to employees as individuals, thus identifying individual needs and career goals.

2. Developing positive interactions between workers, to ensure collated and constructive enterprise productivity and development of a uniform organizational culture.

3. Identify areas that suffer lack of knowledge and insufficient training, and accordingly provide remedial measures in the form of workshops and seminars.

4. Generate a rostrum for all employees to express their goals and provide the necessary resources to accomplish professional and personal agendas, essentially in that order.

5. Innovate new operating practices to minimize risk and generate an overall sense of belonging and accountability.6. Recruiting the required workforce and making provisions for expressed and promised payroll and benefits.

7. Implementing resource strategies to subsequently create and sustain competitive advantage.

8. Empowerment of the organization, to successfully meet strategic goals by managing staff effectively.

9. The human resource department also maintains an open demeanor to employee grievances. Employees are free to approach the human resource team for any conceived query or any form of on-the-job stress that is bothering them.

10. Performance of employees is also actively evaluated on a regular basis. These are checks conducted by the HR to verify and thereby confirm the validity of the employees actual performance matching the expected performance.

11. Promotions, transfers or expulsion of services provided by the employee are some duties that are enforced by the human resource department. Promotions are conducted and are predominantly based on the overall performance of the individual, accompanied by the span or tenure he has served the organization.

12. Looks at the possibilities of the employee from one job to another, maintaining the hierarchy in the company and considering the stability of post and the salary obtained over a period of time.

HRM activities

1. Recruitment Management2. Workforce Planning 3. Induction Management 4. Training Management 5. Performance Management

6. Compensation & Benefits 7. Attendance Management8.Leave Management 9.Benefits Management10. Overtime Management

11. Pay slip Distribution 12. Timesheet Management 13. Employee Information/Skill management 14. Employee Survey 15. Exit Interviews & Process 16. Health & Safety

These activities may vary from one workplace to another. Large workplaces are more likely to employ at least one HRM/personnel. Large org. might divide HRM activities among several managers; one specialist for recruitment and selection, and one for employee trainings and development.

HRM functions and activities are the heart of the organization. Getting the right people to do the right job and in the right places will go a long way to ensure the overall achievement of the goals of the organization. Therefore, the functions must be well towards excellence.

Emerging role of HRM

The Role of Human Resources Department

As a specialist

As a facilitator

As a change agent

As a controller

Value of Human Resource Competitive advantage Human Resource

Accounting – It is measurement of the cost and value of people for an organization

Role and Responsibilities of a HR Executive in an

Organization

I. RECRUITMENT

Understanding the manpower requirement Drafting the job description Sourcing candidates Screening candidates Encouraging the employees to provide reference for better prospectus

Conduct technical interviewCommunicating the employment status to the candidatesMaintain and update the data base of the candidatesBack ground verification of selected candidates

II. INDUCTION AND ON-BOARDING

Issuing the appointment letter with brief working agreement. Describe the culture and policies followed by the company. Filing the relevant document of the new joiner as required. Introduce the team and management to the joiner. Explaining the mode of communication Coordinating with the IT team to get his Email ID made.

III. HR POLICIES AND HR MANUAL

Drafting HR manual for the company.Making or amending the existing policies.

IV. ATTENDANCE AND LEAVE RECORDS

Keeping a track of attendance of the employeesFiling leave forms and keep the track of leave takenSeeing to that there is not much absenteeism on any given day take correct decisions on irregular employees

V. PERFORMANCE MANAGEMENT

Helping the seniors do performance appraisal in a better way by adopting better appraisal practices.

VI. EMPLOYEE ENGAGEMENT

Keeping a track on employee turnover and exist.Taking initiatives to engage the staff to their work.Taking the surveys in order to understand their engagement level and accordingly take

actions.Planning events or activities with the support of top level management.

VII. WORK FORCE MANAGEMENT

Handling the staff so that people are not dissatisfied with each other.Handling cross culture thingsSee to it that there is no grouping or dissatisfied personOther employee related issues.

VIII. STATUTORY COMPLIANCE

Leaves –as per the act that is applicable.Minimum salary PF/ESIC/Medical deductions as

applicable other compliances.

IX. EXIT FORMALITIES

Conduct exit interview of the candidate who is resigning.Trying to get feedback for company and implement corrective measures.Helping the person to be relieved properlyIssuing relieving letter and letter of experience.Doing the full and final settlement of the person.

X. COMPENSATION AND BENEFITS

Designing the salary structure for employees.Helping the employees to save tax.Calculating the gratuity, handling PF accounts.

XI. EMPLOYEE MOTIVATION AND T&D / L&D

Plan training sessions.Hire trainers with specific skills.Send motivational mails to employees.

Challenges to HR Professionals

Worker productivity Quality improvement The changing attitudes of workforce The impact of the government Quality of work-life Technology and Training

HUMAN RESOURCE MANAGEMENT AND OTHER ORGANIZATIONAL

FUNCTIONS

Product & HR

Production & HR

Marketing & HR

Management Techniques & HR

Organization structure & HR

Human Resource Planning

Planning for the future personnel needs of an organization,

taking into account both internal activities and factors in the external environment

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HR Planning

Job Design usually done prior to recruitment the process of describing the work that needs to

be done by an employee and specifying the requirements needed in fulfilling

the job

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HR Planning

Recruitment development of a pool of job candidates in

accordance with a human resource plan its purpose is to provide mgmt. with enough

candidates from which they can select qualified employees

internal versus external

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Attracting Employees

Selection the mutual process whereby the organization

decides to make a job offer and the candidate decides whether or not to accept it.

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Attracting Employees

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Steps in selectionSteps in selection

Job Application

Initial Interview

Testing

Background Investigation

In-depth Interview

Physical Exam

Job Offer

Orientation a program designed to help employees fit

smoothly into an organization

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Developing Employees

Training a process designed to maintain or improve current

employee performance Development

a process designed to develop skills and attitudes necessary for future work

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Developing Employees

Difference between Training and Developmental Programs

Training is for the current improvement in the job while developmental program is for improving the skill which will be used in the future.

Both managers and non-managers receive help from training and developmental program but mostly non-managers are concerned with training while the managers are concerned with developmental programs.

Why Training and Developmental Program?

To improve three types of skills

1) Technical skills2) Interpersonal skills3) Problem solving skills

Training Methods1) Most training takes place on the job because

this approach is simple and inexpensive.

2) Some skill training is too complex to learn on the job. in such cases it should take place outside the work setting.

Performance Appraisal process of providing feedback to subordinates

regarding their performance on the job.

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Developing Employees

TYPES OF PERFORMANCE APPRAISAL

Informal Performance Appraisal: “The process of continually feeding back to

subordinates information regarding their work performance”

Formal Performance Appraisal: “A formalized appraisal process for rating work

performance, identifying deserving raises or promotions, and identifying those in need of further training”.

GraphicGraphicRatingRatingScaleScale

Written Written EssaysEssays

Critical Critical IncidentsIncidents

360 Degree360 DegreeFeedbackFeedback

MultipersonMultipersonComparisonsComparisons

BARSBARSBehavioralBehavioralAnchoredAnchored

Rating ScalesRating Scales

Performance AppraisalMethods

CompensationThe adequate and

equitable remuneration of personnel for their contribution in the achievement of organization objectives.

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Retaining Employees

Compensation and benefits Benefits of a Fair, Effective, and Appropriate Compensation

System Helps attract and retain high-performance employees Impacts on the strategic performance of the firm

Types of Compensation Base wage or salary Wage and salary add-ons Incentive payments Skill-based pay

Factors That Influence Compensation and Benefits

Level ofCompensationand Benefits

Employee’s Tenureand Performance

Size ofCompany

Kind ofJob Performed

CompanyProfitability

Kind ofBusiness

GeographicalLocation

Unionization

ManagementPhilosophy

Labour- orCapital-Intensive

How long has employeebeen with company and

how has he or she performed?

Does job requirehigh levels of skills?

What industry is job in?

Is business unionized?

Is business labour- orcapital-intensive?

How large is thecompany?

How profitable is thecompany?

Where is organizationlocated?

What is management’sphilosophy toward pay?

Labor relationsEntails recognizing the validity of unions, negotiating

for the collective bargaining agreement, and being able to handle strikes and other forms of mass action.

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Retaining Employees

Maintenance the process of providing the

following services to employees: career counseling safety & health programs

Also involves the minimization of absenteeism and tardiness

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Retaining Employees

Separation the process of re integrating employees to

society; entails the following: employees should be terminated for a just

cause a retirement plan must be provided for old

employees as an aid when they leave the company.

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Retaining Employees

Objectives of HR Planning

To maintain To forecast

To optimize

To utilize

HRP at different planning levels

Corporate – level planning Intermediate – level planning Operations planning Planning short-term activities

Organizational plans and objectives

Identify future humanresource requirements

Compare with the current HR inventory

Determine the redundantnumbers

Determine the numbers,levels & criticality of vacancies

Analyze the cost & time involvedin managing the demand

Analyze the cost & time required for managing surplus

Retrench

Choose the resources & methods of recruitment

Redeploy

HUMAN RESOURCE PLANNING MODEL

Job analysis HR inventory Generate a fairly accurate picture

existing situation

Assessing current human resources and making inventory

Compare future needs with current availability Analyze companies change plan Forecasting methods used are Time Series Analysis,

Regression Analysis and Productivity Ratios

Forecasting

GROWING IMPORTANCE OF HR PLANNING

1. Right Number2. Right Time3. Right Skills4. Right Case

The 4 R’s

IMPORTANT TRENDS IN HRM

Summary HRM is a tool that helps managers to plan, recruit, select, train, develop, remunerate,

motivate and make maximum utilization of human and non human resources for the

organization and society at large.

“One machine can do the work of fifty ordinary men. But, No machine can do the

work of one extraordinary man.” - Elbert

Hubbard

THANK YOU…